The decision to remit is a matter of interpersonal trust

Kamal Kasmaoui, Farid Makhlouf and Refk Selmi

Economics Bulletin, 2023, vol. 43, issue 2, 733 - 747

Abstract: This article seeks to assess the role of the level of interpersonal trust in a country in the remittance landscape. Using historical data from the 2010-2014 wave of the World Value Survey (WVS) for interpersonal trust, our findings underline the substitution role played by interpersonal trust with remittances. More accurately, remittances tend to drop when the rate of interpersonal trust in the country of origin is high. Overall, a rise in trust is likely to underpin social cohesion, limiting therefore the need for remittances. These results are still fairly solid and unambiguous after controlling for confounding factors and possible reverse causality.

Keywords: Interpersonal Trust; Remittances; Social Capital. (search for similar items in EconPapers)
JEL-codes: O1 Z0 (search for similar items in EconPapers)
Date: 2023-06-30
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http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I2-P60.pdf (application/pdf)

Related works:
Working Paper: The Decision to Remit: Is it a Matter of Interpersonal Trust? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-23-00061

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